Procter & Gamble, the long-time world leader in consumer products and the leading global advertiser, is ready to embark on another new strategy. It has tried many tactics in recent years to try to stimulate company growth and profits.
P&G’s latest approach may seem counter-intuitive — to grow by shrinking its brand portfolio. However, this idea does seem on target and reflects the essence of the Pareto 80/20 Principle that relatively few products account for a disproportionate amount of sales and profits.
As reported by Rachel Abrams for the New York Times:
“After years of expansion into areas like pet food and beauty products, Procter & Gamble announced that it would cut as many as 100 brands from its arsenal to focus on others, like Tide, that made the company a powerhouse over the decades. The move is part of a strategy to improve the company’s financial performance by doubling down on about 80 brands that generate 95 percent of the profits and 90 percent of sales, according to A. G. Lafley, the firm’s chief executive. The company, and the industry at large, have faced pressure as consumers continue to spend less than they did before the financial crisis.”
[According to Lafley,] “‘This new streamlined P&G should continue to grow faster and more sustainably, and reliably create more value. Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.'”
Click the image to read more of Abrams’ story.
Photo by Mario Anzuoni/Reuters
Diane Von Furstenberg has been a prominent, trend-setting fashion designer for decades. Take a look at the Web site of her company to see what she’s doing now.
Here’s a brief bio of Von Furstenberg by Liz Welch of Inc.:
“Designer Diane von Furstenberg was 27 when she made the first wrap dress in 1974. The iconic design landed her on the cover of Newsweek — and millions of women snapped up her dresses. But when demand faded, von Furstenberg ended up selling most of her licenses to avoid bankruptcy. In 1997, von Furstenberg relaunched her company, which now has annual sales of more than $200 million. The wrap dress, too, made a comeback, and recently celebrated its 40th anniversary with ‘The Journey of the Dress’ exhibition, which traveled the globe. And, as the 68-year-old designer recently shared with Inc. contributing editor Liz Welch, she is focused on building a company to outlast any fad.”
Click Von Furstenberg’s photo to read her recent interview with Liz Welch for Inc.
Research giant Nielsen annually examines thousands of new product introductions.
As part of its analysis, Nielsen has identified its 2014 U.S. Breakthrough Innovation Winners: “These diverse new products carry the common thread of finding and filling unmet consumer needs while demonstrating that with significant effort, game-changing innovation is possible in any category and by all types of companies.” The products are all commonly found in the supermarket.
The winning products were all introduced in 2012. We have inserted direct links to these products:
- Angry Orchard Hard Cider, The Boston Beer Co.
- Barcel Takis, Barcel USA
- Bud Light Lime Ritas, Anheuser-Busch
- Depend Silhouette Briefs for Women and Depend Real Fit Briefs for Men, Kimberly-Clark
- Febreze Car Vent Clip, Procter & Gamble
- Gevalia Kaffe Retail Coffee, Kraft Foods
- International Delight Iced Coffee, The WhiteWave Foods Co.
- Meow Mix Tender Centers, Big Heart Pet Brands
- Mucinex Fast-Max, Reckitt Benckiser
- Nabisco belVita Breakfast Biscuits, Mondelez Global LLC
- Nature Valley Protein Bars, General Mills
- Sargento Ultra Thin Slices, Sargento Foods
- Tide Pods, Procter & Gamble
- ZzzQuil, Procter & Gamble
Many companies have had a major impact on business practices and our lives. And a lot of these companies have endured for a century or more.
Recently, Fortune published a list of 27 companies that have changed the world over the last century-plus.
Sorry, Apple fans — but Apple ranks only 16th on the list!
Click the image to see the full list. :-)
Happy Fourth of July. Looking for something to do this morning?
Think you know product management? Try out this 10-item quiz.
Let us know how you do. (No cheating: The answers are on slide two.)
Although Apple’s iconic logo has existed for only a few decades, did you know that some company logos have been around for hundreds of years?
As Thomas C. Frohlich and Alexander Kent report for 24/7 Wall St.:
“Even before global marketing campaigns, television commercials, and social media, a company’s logo has been important. Over time, as businesses and consumers have changed, most major companies have also changed their logos dramatically. Still, some logos have had incredible staying power and have lasted for decades or even hundreds of years.”
“The world’s oldest logos have all retained some core visual element, although several have been noticeably altered. Stella Artois, for example, is recognized by several details of its icon. The horn and the star resting above the label are the features continually represented in the brand’s history.”
Click the Stella Artois logo to see the list and description of the 10 oldest logos.
For most companies, maximizing their return on investment (ROI) is a key goal that drives their strategies. But are they using and measuring ROI properly? Sometimes, ROI is not so easy to determine.
With this in mind, consider the slideshow “How to Determine the ROI of Anything” by Gary Vaynerchuk, working at VaynerMedia: “What’s the ROI of a piano? What’s the ROI of a YouTube channel? What’s the ROI of anything!? After you read this deck you’ll be able to answer all these questions easily.”
For many companies, innovation is the life blood for long-term success. Nonetheless, success with innovations can be elusive.
As Mindjet,which offers a platform for enterprise innovation, notes:
“Innovation is vital to achieve success in today’s evolving marketplace, but it’s easier said than done. In reality, most companies struggle to achieve true innovation, despite acknowledging its importance. Whether due to a lack of resources or ability, many companies remain stagnant. But recent data shows that’s only part of the puzzle, and that a holistic, structured approach to innovation is one that works — and that yields real business results. Check out the full infographic below for more on what really fosters innovation.
For some tips on innovation, take a look at this infographic from Mindjet and Column Five.